Generative Ai Handbook
Generative Ai Handbook
Generative AI
Handbook
What to know and what actions to take to prepare
your business for an era of exponential innovation
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The sense of urgency is understandable given rapid advancements. However, while most companies have actively explored gen
AI’s potential through proofs of concept and early-stage experimentation this past year, Cognizant research shows that many
leaders (30%) believe meaningful impact is still years away.
For most executives we engage, the question is not “if” but “how and when” gen AI will transform their business models and
operations. Many are now looking to scale early successes through broader initiatives. Our own research and client
conversations this past year reveal enthusiastic curiosity tempered by thoughtful diligence around these emerging capabilities.
As enterprises look to transition experiments into scaled production-grade solutions, understandable caution accompanies the
excitement.
Still, through skills-building and laying responsible foundations in 2023, companies equipped themselves for the next stage of
maturity in leveraging AI’s generative potential. 2024 is the year to accelerate AI impact through focus and investment. The rules
of engagement continue to rapidly evolve as practical experience refines our thinking on the possible. By working together, we
can apply this technology practically and responsibly to increase productivity and deliver superior human-centric experiences.
Let’s shape the future together with care, creativity and purpose.
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Landscape
The human-like ability of generative AI to converse,
consider and create has captured imaginations. By
understanding how we got here—and the decades of
thinking that led us to gen AI—we can better predict
what’s coming next.
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The birth of AI The two AI winters The rise of machine learning The Advent of Deep Learning
In the early days of modern While progressive advances With the internet and Significant breakthroughs in
computing, the Turing Test like expert systems proliferate accelerated business neural network and
and the famed 1956 and cultural interest in AI digitization, data availability generative AI model
Dartmouth Workshop launch grows, underwhelming results and IT funding expand to development, accomplishing
the era of AI. The first AI lead to two periods of drive practical AI applications. previously impossible tasks,
programs form and optimism reduced funding and focus. Major advances in robotics alongside surge in big-tech
is high. and data-driven solutions. investment. As of Q1 2024, the
Crunchbase AI startup list has
grown to nearly 10,000
companies2.
1 2 3 4 5
A much larger context New gen AI models, Waves of regulation Generative video and War for talent shifts
window expanded AI features in and standards AR/VR renaissance to war for innovation
Increasing context enterprise software World governments With significant As 30% of work
windows are critical for Next-gen models are will adopt and adapt advancement in hours4 are expected
many enterprise use- already in development, regulations at lagging AR/VR technology to be directly
cases and will allow for including open-source pace as they address spearheaded by Meta, impacted by AI and
larger, more models with more rapidly evolving Apple and Microsoft, resulting automation
comprehensive prompts flexibility and control. ethical, economic and compelling new capabilities,
to be passed to models. Expect acceleration of societal concerns. applications backed productivity gains
This new access to vast new entrants and Organizations will by gen AI will launch. will be felt by all. The
contextual datasets will innovation. Enterprise formalize AI With conversational war for technology
open even more doors platforms are adding AI governance roles with user interfaces (i.e., talent will be
for AI. tooling that will drive variable risk tolerance chat, voice), new visual reshaped as a war
further proliferation. for use cases. worlds will be seen. for technology
innovation as
organizations
differentiate with
data.
Operating effectively in the era of generative AI requires a reconstruction of the now decades-old digital maturity narrative.
We’re entering a post-digital era where every enterprise is digital and what defines leaders is their adaptability—which extends
to their definition of maturity, how they operate and what they sell.
The gen AI era is one of continuous, perpetual change. The fundamental definition of computation and chip design is changing
with AI as rigid, linear and exact computations are swapped for the abstract and inexact logic that underpins neural network
thinking. Companies must now operate in similar ways.
As noted in our gen AI timeline, there has been an explosion of AI-centric startups born over the past two years—these might be
defined as AI natives. These companies focus on AI and, presumably, they have AI built into their operations and culture as well
as their product.
But just as our definition of digital maturity requires a ‘continuous change’ perspective, so too will our definition of the “AI-native
company”.
Being “born into” the gen AI era is far less important than exploration and adoption. Those organizations who pioneer AI—and
set the rules early to gain competitive market share from it—will establish what it means to be an AI native. Enterprise
organizations, with their robust proprietary data to build upon, have the advantage.
• Modern operations and architecture: Delivery and IT infrastructures that leverage data and accelerate change
• Enabled AI culture: Definitive policies and governance with access and training for staff to benefit from AI
• A focus on disruptive propositions: Already piloting AI experiences to hedge against new entrant threats
• Engaging suppliers to evolve services: Addressing gen AI opportunities for mutual benefit
• Simplifying not complexifying: See gen AI as a way to transform value creation vs. ”just new tech”
• Media generation
Entertainment and creative studios using gen AI to create animation sequences, social reels and more
• Market insights
Aggregating customer feedback (reviews, call transcripts, etc.) for gen AI-driven insights
• Interactive chat-bots
Transforming the classic chat-bot, gen AI powering conversational agents to answer and explain
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Basics
The fundamental strengths of generative AI perfectly
mirror its unavoidable weaknesses. The fundamental
characteristics of the technology provide insight into
its disruptive potential – and explain why adoption will
impact every part of the enterprise over time.
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1 2 3 4 5 6
Complex process Data Predictive analysis Driving efficiency Real time Multimedia
automation augmentation and Gen AI is capable and supporting optimization generation
Core business completion of analyzing knowledge work Gen AI is capable Gen AI is
processes that, in Gen AI systems complex, AI makes of monitoring capable of both
the past, have not work with data to structured or knowledge work processes and consumption
been open to provide first-line unstructured data more efficiently by outputs to and creation of
automation due to analysis, to identify patterns accelerating and proactively identify rich media
complexity and classification, and trends to form expanding on opportunities for across text,
variability can now sanitization and actionable ideation, distilling improvement, audio, video and
be managed and more, free from recommendations data to find prescribe and even images,
reshaped by AI human error and insights, rapidly implement unlocking
at scale drafting and more changes powerful new
possibilities
Whether its brand values, ethical considerations, situational The explainability problem
knowledge, historical learning, consumer needs or anything
else, human workers are expected to understand the context of When AI provides a decision, there is inherent uncertainty
their work—and this can impact the output of their efforts. in its certainty. The larger and more complex a model, the
With generative AI, contextual understanding is often difficult harder to ascertain.
to achieve “out of the box,” especially with consumer tools like
ChatGPT. This has been the source of much of gen AI’s
criticism.
How can we ensure ethical What legal implications How can we ensure How will this impact our
usage? should concern us? predictable output? brand or public perception?
Significant concerns for Concerns for copyright, IP Concern over Concern over customer
misuse and harm, bias in infringement and regulatory hallucinations, poorly preference against gen AI in
poorly trained systems and issues when dealing with structured or insufficient key touchpoints and dilution
other negative outcomes of protected data, privacy direction in business- of brand experience
use impacting scenarios
Cognizant answer: These Cognizant answer: As with
Cognizant answer: AI concerns are ‘native’ to Cognizant answer: other AI questions, the key is
creates entire new digital business. Processes Generative AI can never be to test and train gen AI
categories of risk that and tooling can help expected to provide 100% systems well before usage
require focused testing, navigate and safeguard predictability in output. This and be selectively
governance and assurance. here and every business is why training, tuning and transparent with customers
LLMOps creates a needs a unique plan continuous monitoring must about use
framework for such be integrated
responsible usage
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Applications
Consider the early plugins available for ChatGPT, or
bots on the Poe app, and it’s clear that the use -cases
of generative AI are about as vast and varied as
software itself—and those are just chat interfaces.
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1 2 3 4 5 6 7
Market and Software Production Marketing Expert Employee Customer
competitor development and sales advisors engagement experience
intel
With so much opportunity and so many questions, it can be hard to know where to start. As you’ll find in our discussion of gen AI
readiness later in this guide, what’s key is that organizations begin exploring this technology early to identify their own
opportunity spaces, safeguard against disruption and begin building skills.
Fortunately, there’s no need to start this journey from scratch. With the following seven example use-cases of generative AI, we’ll
highlight just how varied the opportunity can be. Every part of the value chain across every industry stands to be disrupted in
unique, differentiating ways as organizations bring their unique data, processes and POV to the discussion. Let’s dig in.
Ingestion of market data Gaining insights from data Developing and validating Packaging and distributing
hypotheses
Summarize and classify Synthesize multiple sources Concept mock-up Report writing
Collate captured data to Correlate, compare and Mock up concepts and Generate narrative and
identify relevance to combine related content on stimulus for research testing explanation around raw
defined topics of interest a topic(s) to distill insights and user validation data and derived insights
2. Software development
Microsoft Visual Studio Code, the wildly popular integrated development environment (IDE), has long-supported GitHub’s Copilot
product (by some estimates automating 40%-60% of code writing5) and now also integrates ChatGPT directly into the developer
interface. But the utility of generative AI during software development goes well beyond writing components. The entire software
development process is set to see transformation as this technology impacts creativity, quality, productivity, compliance, utility
and more.
3. Production
Product research, production and quality control will see significant Generative AI impact in the coming years as organizations
across industries seek to unlock transformative new efficiency and product innovation ahead of competition. This zone is highly
controlled and data-intensive, making it a perfect early adoption area. The IP established through smartly leveraging Generative
AI in this space will reshape industries and establish new leaders.
5. Expert advisors
Generative AI streamlines and accelerates the provisioning of expert advice to benefit end-users and businesses alike. In many
scenarios, gen AI has the capacity to act in a self-service model to provide expert guidance directly to users. Where complexity
is higher or in safety-critical environments, gen AI can facilitate many stages of the process without acting in a fully autonomous
way. With AI-driven pre- and post-processing, experts can more effectively utilize their time and focus on the highest-value or
most-critical scenarios.
Customer requests service Collect information Evaluate and recommend Action recommendations
6. Employee engagement
Companies that adopt generative AI at a cultural level, going beyond asset production and chat interactions to elevate all
common touch-points for customers and employees alike, will see the biggest gains in the coming years. Employee engagement
is an exciting space for gen AI with the potential to impact recruiting, onboarding, team-building, performance management,
support and more. The efficiency gains here will empower innovation across the business as gen AI permeates the market.
7. Customer experience
Whether they’re just browsing or already a loyal customer, the way that people engage with brands throughout the shopping
and post-purchase experience is set to dramatically evolve with gen AI. With answers becoming more seamless and appetite for
content noise decreasing, customers will expect personal, intuitive, adaptive touch-points that understand and serve their needs.
It’s time to put more you into UX.
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Responsible AI
Unlike the software solutions of the pre-generative AI
world, generative solutions cannot be built, tested, and
released into an ecosystem without continuous
oversight. Continuous governance is mandatory, and
it’s cultural.
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Enterprise AI and machine-learning (ML) applications require automation engineering, data management, feature engineering,
resource management, QA, and testing teams, IT operations and more; all aligned with coherent, shared accountability in order
to effectively deliver solutions. In the following pages, we will explore how LLMOps expands our view of DevOps and how an
updated view of quality engineering can safeguard AI solutions with holistic automated testing.
It all starts with setting strong, enforceable principles for responsible AI development.
AI systems should perform reliably and safely. By building AI systems should be understandable. Build trust and drive
and deploying AI in accordance with best practices where understanding through silo-breaking collaboration and rich
we robustly test before deployment then monitor and communication across users and stakeholders, allowing
improve operations regularly, we can reduce the risk of them to understand AI systems and system outputs within
harm or unintended outcomes. their own, personal context.
Build a more sustainable and inclusive world through AI Bias exists in our data, models and our world; responsible AI
innovation. AI outcomes must incorporate human benefit systems seek to ensure AI is fair, unbiased and
and environmental sustainability in order to deliver impact representative end to end and full-context. AI systems
and value to shareholders, users, customers, employees should treat people fairly and AI should be produced and
and society at large. reviewed by diverse teams.
Protect privacy and respect boundaries Drive accountability and enable participation
AI systems must be secure, compliant and respectful of People should be accountable and in control of AI systems.
people. Affirmative consent and a human-centered, Clear processes and incentives for engagement create a
privacy-first approach ensures sensitive data is never used culture where every individual is empowered to protect
unethically. A variety of auditing systems and safeguards people, minimize risk and discover spaces of humane
are key within gen AI systems. value.
Gen AI solutions can be surprisingly seamless. The ability to understand users, act on their needs and provide human-like
creative responses is what makes gen AI such a compelling solution today. Behind the scenes, though, gen AI solution
development adds layers of complexity to the work of digital teams that go well beyond API keys and prompts. Orchestration is
critical.
• Gen AI systems are difficult to test and unpredictable by nature – they cannot be validated and deployed in a ”set and
forget” fashion
• Development requires many skills and teams must rely on each other – this takes coherent organization and alignment
programs
• Gen AI systems must be at once predictable but flexible – this takes training and continuous monitoring
• Generative AI development requires too many skills and processes to manage with manpower alone
• Generative AI often leads to scenarios where privacy, regulatory compliance and data leakage are concerns—systems must
be secure
• Manual review of issues, anomalies and experience is untenable and might remove any ROI or advantage of these systems—
automation is needed
Due to these conditions, new ways of working are required. Building on the popular concept of DevOps, LLMOps provides a path
forward.
LLMOps defined: LLMOps aligns data engineering, agent development, software engineering and IT Operations to enable
continuous integration, continuous delivery and continuous model training with an emphasis on automation and monitoring at
all steps.
As organizations seek to develop effective generative AI- enabled solutions for internal and external users, defining and
enforcing their own LLMOps approach is imperative.
This often starts with defining the KPIs of gen AI solutions (aligned to responsible AI principles) and ensuring that processes,
governance and tooling are in place—made possible by LLMOps—to monitor and influence those KPIs.
Cycle time: Deploy frequency: Review time: Automated Data and model
Duration from How often updates Time taken to solution ratio: drift:
initiation to or new gen AI review and The proportion of Discrepancies in
deployment of gen solutions are validate solution tasks handled solution (model)
AI-based solutions pushed to (model) outputs autonomously by outputs or
production and performance the system incoming data
from the training
scenario
LLMOps and AIOps are often confused, but they describe entirely different disciplines: LLMOps standardizes machine
learning model deployment while AIOps automates IT operations.
Andreas Golze
While QA automation has become an area of strength for many mature engineering organizations, traditional approaches
are insufficient for generative AI. The scope of QA and test automation has changed, with new driving factors to consider for
AI-based applications.
• Low data scientist QA efforts: Services and tooling to reduce specialist effort
e.g., low-code/no-code solutions, customizable observability UI, etc.
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Readiness
Preparing an organization for the generative AI world
doesn’t mean moonshots and risk, it means foundation
laying and learning. Setting up governance now will
pay dividends near and long term.
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With so much hype and a sea of noise to cut through, many organizations are asking more tactical questions. What must be
navigated to move forward?
To get practical about gen AI, start with these questions. In the following pages, we’ll double-click into each as we explore a path
forward.
1 2 3 4 5
Provisioned initial Designed a path Introduced AI to the Modernized and Set new expectations
access to to scale development process? significantly automated with our suppliers?
enterprise-grade successful POCs? core business operations?
gen AI tools?
At the individual team-member level, workers around the world began testing • Update policies and governance
generative AI for their own use-cases. A recent survey from The Conference Board A blocker for many orgs today, set
found that 56% of workers are using gen AI on the job, with nearly one in 10 clear policies and governance for
employing the technology on a daily basis. Yet just 26% of respondents said their a generative AI world
organization has a policy related to the use of generative AI, with another 23%
reporting such a policy was under development.6 • Educate employees actively,
communicate often
Organizations have been relatively quick to respond to these risks. Amazon, notably, Clear communication to
found7 indication of proprietary data in public model usage and responded with a associates around access, policy
ban. leadership, support and
appropriate usage
This isn’t luddite behavior, it’s just good practice. At this early stage, it’s unclear
exactly how customer data, proprietary business data and other protected data is • Set governance over approved
either being exposed to the operators of public LLMs or used to train the models services
themselves. Couple this with the simpler considerations of Privacy Policy adherence, Clarify approved gen AI solutions
Terms of Service, regulatory considerations and more bans are surely on the horizon. and establish ownership for
access provisioning and support
But still, the advantages…
As new products go, any amount of friction (cost, risk, etc.) can have a chilling effect • Identify and supervise adoption
Maintain observability over
on adoption. But generative AI isn’t simply a new product; it’s a transformative
approved AI services, monitor
technology that can change the world in striking, progressive ways.
who is using them and for what
Early adopters will have the advantage in this new world. Beyond the obvious purposes
cultural and process execution benefits of gen AI, we expect a patent boom in the
coming years as organizations invent novel uses of gen AI-based tools within their • Learn and capture best-practices
business. Source insights and best
practices within an organizational
Preparing the business for gen AI means getting serious about near-term, safe- context, communicate learning
guarded adoption with well-integrated monitors and control of usage. Gain
advantage while minimizing risk and learn as you go.
Here are just some ways that gen AI might impact product development.
Idea generation
The ability of Generative AI applications to work with trained models
while evolving those models (and the application’s outputs) with the
consumption of real-time data can unlock compelling use-cases for
product idea-generation. Rather than relying on surveys and user reviews
for qualitative data, Generative AI agents might deliver new concepts
frequently based on real-time analytics. Product managers can then link
these ideas to business goals and set a path forward.
Product design
As multimodal models (capable of intaking and outputting images, text,
audio, etc.) mature and see enterprise adoption, “clickable prototype”
design will become less a job for designers and instead be handled by
gen AI tools. Fed with design principles, systems and reference designs,
these prototype design tools will produce unbiased prototypes best fitting
the market data available. The job of designers will be to identify the most
promising solutions and refine them.
Risk mitigation
A core responsibility in product management is to manage and mitigate
risk. With its predictive analytics capabilities, AI tooling can help in
identifying potential risks and roadblocks early on in the prototyping
phase. Quality, market readiness and future success can all be gauged
by having algorithms analyze historic data, user preferences and even
real-time market trends.
Resource optimization
Sustainability is the challenge of this generation of business. Generative
AI can support sustainability efforts by optimizing resources and material
mix for minimized waste and environmental friendliness. It can take
regulatory processes into account, report on data and even affect
subsequent production processes for both software and physical goods.
Like media streaming, ride-sharing and other tech-driven economic catalysts that regulators have tried to stay in front of,
resistance is a bit futile. Technology will be squeezed for as much juice as it can offer in a free market.
In our opening section of this document covering the future of gen AI, we touched on a shift from a war for talent (commonly
discussed in the 2010s and pandemic era) towards a war for innovation as all businesses use gen AI to gain efficiency. AI-
enabled automation of core business processes will drive this shift. Savings must be reallocated to accelerating business
value.
1. Target core functions 2. Assess and expand on 3. ID opportunities to pre- 4. Deploy generative
for AI-driven existing process process data assurance
augmentation automation
Utilize gen AI to reduce Apply gen AI to business
Explore areas for Apply gen AI solutions to or replace human data processes to
generative AI to support existing process processing, gaining continuously and
knowledge work and automations to further speed and accuracy completely audit quality,
accelerate creativity streamline for efficiency regulatory compliance
and more
Most jobs will see some change from gen AI, and over half could be greatly impacted.
As you seek to leverage gen AI to unlock new efficiency, differentiate experiences, Going well beyond the cost savings
maximize quality, find cost-savings and evolve the business model, don’t discount of a joint investment, with enriched
the role your suppliers will play in these improvements. data, access to more skills and
beyond, these partnerships might
Whether a service provider, a manufacture or raw goods provider, a logistics service benefit both parties in dramatic
or any other company that plays a role in your operations, there is an advantage to ways when executed well. Consider
engaging early in a dialogue about gen AI. the role of each key supplier within
your service or product delivery and
Every one of your suppliers will be at a different stage of this journey. As they
move the discussion beyond what
navigate use-cases, seek to answer questions about risks and control and otherwise
they can do with AI for you.
dive into gen AI, join them.
You stand to gain from their You will learn from one another Open the door to more data
improvements
As all companies are learning, work As you engage with your suppliers,
Suppliers are critical to your bottom with suppliers to understand their consider internal solution
line. Ask how they plan to improve own findings, partnerships and opportunities and how supplier data
SLAs, decrease total cost of interest areas. Formalize shared might improve model training and
ownership, operate faster and learning between strategic teams solution delivery. Bring predictability,
otherwise drive more business value and capture insight. new product ideas, streamlined
for you and other customers. operations and more to life.
Dive deeper into this topic and learn about the kinds of gen
AI work Cognizant is doing with our clients:
https://www.cognizant.com/us/en/insights/tech-to-
watch/generative-ai
References
1. https://www.cnn.com/2022/07/23/business/google-ai-engineer-fired-sentient/index.html cognizant-technology-to-invest-1-billion-in-gen-ai-over-three-years-
123080300490_1.html
2. https://www.crunchbase.com/hub/artificial-intelligence-startups
3. https://thehill.com/policy/technology/3954570-google-ceo-says-ai-will-impact-every-product-of-every-company-calls-for-regs/
4. https://tvpworld.com/71221233/ai-threatens-nearly-30-of-jobs-within-oecd-report
5. https://devclass.com/2023/02/16/github-claims-new-smarter-copilot-will-block-insecure-code-writes-40-60-of-developer-output/
6. https://www.conference-board.org/press/us-workers-and-generative-ai
7. https://gizmodo.com/amazon-chatgpt-ai-software-job-coding-1850034383
8. https://www.bain.com/about/media-center/press-releases/2023/majority-of-health-system-executives-believe-generative-ai-will-reshape-the-industry-yet-only-6-have-
a-strategy-in-place/
9. https://www.cognizant.com/us/en/gen-ai-economic-model-oxford-economics
10. https://www.hyfe.ai/
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